Legal & taxes for property buyers in Spain

🪙 Legal & Taxes for Property Buyers

🔶 1. ITP – Property Transfer Tax (for resale properties)Applies when buying second‑hand (resale) property.Standard rate in the Valencian Community: 10% of the declared purchase price.Paid by the buyer.Notes:Some reduced rates exist for special cases (large families, disabilities), but the standard for foreign buyers is 10%.
🔶 2. IVA + AJD (for new-build properties)If you buy new construction directly from a developer:IVA (VAT)10% for residential property.21% for commercial units or land without construction.AJD – Stamp DutyValencian Community rate: 1.5% of the purchase price.Paid by the buyer.
🔶 3. Notary FeesTypically €600–€1,200, depending on property value and document complexity.Paid by the buyer.
🔶 4. Land Registry FeesUsually €400–€900.Paid by the buyer.
🔶 5. Gestoría / Administrative Services (optional but common)€300–€500 for handling tax submissions, registration, and paperwork.Paid by the buyer.
🔶 6. Lawyer Fees (highly recommended)Commonly 1% of the purchase price, or a fixed fee €1,000–€1,500.Covers due diligence, debt checks, contract review, and tax filings.
🏠 Annual Taxes After Buying
🔶 7. IBI – Municipal Property TaxLocal council tax based on valor catastral.Typically €200–€800 per year.Paid by the owner.
🔶 8. Basura – Rubbish Collection Fee€40–€120 per year, depending on the municipality.
🔶 9. Non‑Resident Income Tax (if you are not a Spanish tax resident)If the property is not rented, you pay tax on an imputed income based on valor catastral.
Rates:19% for EU/EEA citizens24% for non‑EU citizensIf rented out, tax is based on actual rental income.
🏷️ Taxes When Selling Real Estate
🔶 1. Capital Gains Tax (CGT)Paid by the seller if the property is sold for more than it was purchased.
Rates:19% on the first €6,000 profit21% on €6,000–€50,00023% on €50,000–€200,00028% above €200,000
Possible exemptions:Residents over 65 selling their primary home.Reinvestment into another primary residence (for residents).
🔶 2. Plusvalía Municipal – Local Land Value Increase TaxBased on the increase in the land’s valor catastral during your ownership.Paid by the seller, unless contractually agreed otherwise.Can range from tens to several thousand euros.
🔶 3. Real Estate Agency CommissionTypically 3–5% of the sale price.Usually paid by the seller.
🔶 4. Mortgage Cancellation Costs (if applicable)Bank fee + registry fee.
Usually €300–€1,000.
🧭 Quick Practical SummaryBuying:ITP (resale): 10%or IVA 10% + AJD 1.5% (new build)Notary: €600–€1,200Registry: €400–€900Lawyer: 1%Gestoría: €300–€500
Selling:CGT: 19–28%Plusvalía municipalAgency fee: 3–5%